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zmaleki51
Level 3

Incorrect recording Tax payment for payroll as an Expense

Incorrect recording Tax payment for payroll as an Expense

 

I've paid a payroll tax for December 31, 2019. Then when I see the amount on the bank statement, I did match with the Payroll tax. It seems that it's been recorded as an expense (from Payroll liability-Federal Tax) instead of Tax payment for payroll.

Now, in the balance sheet, there's a negative amount in Payroll Liabilities.

I don't know how to fix it.

The transaction for the expense is recroded:

                                                                     Dr.         Cr.

  Payroll Liabilities; Federal Taxes            XX

  Bank                                                                        XX

Solved
Best answer May 01, 2020

Best Answers
KlentB
QuickBooks Team

Incorrect recording Tax payment for payroll as an Expense

I'll help you in fixing it, zmaleki51.

 

We'll have to recategorize that transaction to get rid of the negative amount. We can start by unmatching it in your Reviewed tab so that we'll be able to select the right category then match it again. I've listed the steps below:
 

  1. Select Banking from the sidebar menu.
  2. Choose the appropriate bank account.
  3. Go to the Reviewed tab.
  4. Locate the tax payment, then click the Undo button from the ACTION column.
  5. Go back to For Review tab, then select the payment.
  6. Select the appropriate category from the CATEGORY column, then match it again.

In case you'll pay your taxes outside of QuickBooks Online Payroll (for example, by mailing a cheque to the tax agency). You can manually record the tax payment inside the program to remove the tax payment reminder.

 

I'll be right here to continue helping if you have further questions about tax payments or any other concerns. Feel free to tag me below.

View solution in original post

3 Comments
KlentB
QuickBooks Team

Incorrect recording Tax payment for payroll as an Expense

I'll help you in fixing it, zmaleki51.

 

We'll have to recategorize that transaction to get rid of the negative amount. We can start by unmatching it in your Reviewed tab so that we'll be able to select the right category then match it again. I've listed the steps below:
 

  1. Select Banking from the sidebar menu.
  2. Choose the appropriate bank account.
  3. Go to the Reviewed tab.
  4. Locate the tax payment, then click the Undo button from the ACTION column.
  5. Go back to For Review tab, then select the payment.
  6. Select the appropriate category from the CATEGORY column, then match it again.

In case you'll pay your taxes outside of QuickBooks Online Payroll (for example, by mailing a cheque to the tax agency). You can manually record the tax payment inside the program to remove the tax payment reminder.

 

I'll be right here to continue helping if you have further questions about tax payments or any other concerns. Feel free to tag me below.

View solution in original post

zmaleki51
Level 3

Incorrect recording Tax payment for payroll as an Expense

Thanks Kent. 

Actually, your comments help me to solve it. Just I had to do one more step. I had to undo the bank reconciliation for last 3 months and then delete the transaction, back to the review tab and find the right match for it.

Now the balance shows zero. 

Thanks again for your help :)

Steve_C
QuickBooks Team

Incorrect recording Tax payment for payroll as an Expense

Hi zmaleki51. I'm glad to hear your issue was resolved. Please don't hesitate to come back to the community. There's always someone ready to help. Have a great rest of your day. 

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